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German sporting-goods company Adidas Thursday announced that it had made a deal to sell Reebok to Authentic Brands Group (ABG) for $2.5 billion, roughly 15 years after acquiring the US fitness brand.
Back in February, the German company started the formal process of selling Reebok, which it acquired for roughly $3.8 billion to expand in the US.
"Adidas announced today that it has entered into a definitive agreement to sell Reebok to Authentic Brands Group for a total consideration of up to €2.1 billion, with the majority to be paid in cash at closing of the transaction and the remainder comprised of deferred and contingent consideration," the company said in a statement.
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The transaction is expected to be closed in the first quarter of 2022 with most of the proceeds to be shared with Adidas' shareholders.
"Reebok has been a valued part of Adidas, and we are grateful for the contributions the brand and the team behind it has made to our company. With this change in ownership, we believe the Reebok brand will be well-positioned for long-term success," Adidas CEO Kasper Rorsted said.